- Qantas profits fall 28 percent
Qantas suffered a double-digit profit drop after cutting former CEO Alan Joyce’s pay package by $9 million.
The national carrier led by new chief executive Vanessa Hudson has reported a 28 per cent drop in statutory net profit after tax to $1.25 billion for 2023-24.
Ms Hudson used her first results presentation to distance herself from her controversial predecessor, Mr Joyce, who was in charge when customers were sold tickets for cancelled flights.
“Restoring trust and pride in Qantas as a national airline is our priority, and while there is more work to be done, we will achieve this by consistently delivering for our customers and our people going forward,” he said.
Qantas told shareholders its profits had fallen in the last financial year due to lower fares, higher spending on customer loyalty programmes, increased competition on international flights and lower revenue from cargo.
Ms Hudson, who replaced Mr Joyce in September last year, was chief executive when her airline in May settled with the Australian Competition and Consumer Commission to pay $120 million in fines for selling tickets for cancelled flights to 87,000 customers.
Earlier this month, Qantas announced it would reduce Joyce’s pay by $9.26 million, primarily through the cancellation of long-term incentives.
Before those long-term incentives were removed, the former CEO was due to receive $11.919 million in compensation in 2022-23, including a base salary of $2.145 million.
Qantas told shareholders that profits had fallen due to lower fares, higher spending on customer loyalty programs and lower freight revenue.
The national carrier under new chief executive Vanessa Hudson has reported a 28 per cent drop in statutory net profit after tax to $1.25 billion for 2023-24.
In a bid to win over workers, Qantas has offered 23,000 non-executive employees a $500 staff travel voucher that can be used to pay for already deeply discounted waitlist rates.
This was in addition to a $500 voucher given to employees in February, bringing the total to $1,000 for the year.
“Our focus this year has been on striking the right balance between serving customers, employees and shareholders while building a better, stronger Qantas Group,” Ms Hudson said.
‘I want to thank each and every one of our people for their professionalism, hard work and commitment to serving our clients.’
Ms Hudson was confident Australians would be more inclined to travel over the next year, despite the cost of living crisis.
“These investments come at a time when Australians continue to prioritise travel over other spending categories and travel intent over the next 12 months remains high,” he said.
Qantas Group, which also includes budget airline Jetstar, is set to return to pre-Covid international capacity in May 2024, following the return of more aircraft, including two Airbus A380s.
But the additional flights also coincided with increased competition, leading to an 11 percent drop in revenue for the international flights division.
Earlier this month, Qantas announced it would reduce Alan Joyce’s remuneration by $9.26 million, primarily through the cancellation of long-term incentives.